July 25 (Bloomberg) -- Weatherford International Ltd., an
oilfield-services provider, fell the most in five months after
failing to report post-tax second-quarter earnings because of
investigations into the company’s financial reporting.

The shares slid 8.8 percent to $11.67 at the close in New
York, the largest drop since February 21. The Geneva-based
company has lost 20 percent of its market value this year.

Weatherford plans to revise financial statements from
fiscal 2009, 2010 and 2011 due to a review of its tax
accounting, according to a statement released after the close of
regular trading yesterday. The new filings and its 2012 second-quarter report won’t be submitted by an August 9 deadline to the
U.S. Securities & Exchange Commission, it said.

The company has identified $92 million of expenses from
prior periods as well as $15 million in additional adjustments,
Scott Gruber, an analyst at Sanford C. Bernstein & Co in New
York, wrote today in a note to investors.

“Management’s inability to complete its financials and
provide guidance on the company’s future tax rate will continue
to weigh significantly on the stock,” he said.

Weatherford also announced yesterday it would take a $100
million charge in the second quarter to settle allegations of
improper sales to nations with sanctions restricting trade. The
charge represents “management’s best estimate of a potential
settlement with the U.S. government related to its investigation
of alleged improper sales in certain sanctioned countries,”
according to the statement.

The U.S. Justice Department and SEC is investigating
Weatherford’s participation in the United Nations’ oil-for-food
program, according to a March 15 federal filing. The U.S. is
also investigating the company’s compliance with the Foreign
Corrupt Practices Act, the company said.